MILAN Nov 28 (Reuters) - Telecom Italia will not
bid for Vivendi's GVT subsidiary in Brazil as it
prepares to reject an offer of a capital increase from Egyptian
tycoon Naguib Sawiris, Il Sole 24 Ore said on Wednesday.

"Telecom (Italia) has given up the idea of presenting a
non-binding offer (for GVT)," the newspaper said without citing
sources.

The paper said it appeared that the deadline for preliminary
non-binding offers for GVT had passed and a total of four had
been made, all below 6 billion euros and none from telephone
operators.

Sources have told Reuters that Vivendi is seeking at least 7
billion euros for GVT and that Telecom Italia is one of four
companies that have obtained documents on the Brazilian telecoms
company.

The deadline for preliminary non-binding bids is around the
end of the year, the sources said.

On Tuesday Sawiris told Reuters that he proposed to take a
stake in Italia Telecom through a cash infusion of 3 billion
euros, which would be open to all shareholders and should be
conducted around the current market price of 0.70 euros per
share.

That price is well below the 1.50 euros per share level at
which core shareholders have the stock on their books.

Telecom Italia was not immediately available for comment on
Wednesday about whether it is preparing to reject Sawiris's
offer.

Telecom Italia has been considering whether to bid for GVT,
a broadband specialist in Brazil, to bolster its TIM
Participacoes mobile business there, a major source
of growth in recent years.